I have a Cap 1 Auto Loan where the car was totaled in January 2008. Insurance has paid their part and i'm still waiting for GAP insurance to cover the rest. (long story) Cap 1 sent me a letter stating that they would settle the account for 75% of the balance owed and update my credit reports as "settled in full" my question is this:
What is the difference between "paid in full" and "settled in full"? How will this negatively affect my scores, if at all?
